Everton and Stoke City are locked in talks with Espanyol for striker Pablo Osvaldo.

Everton hope to take Osvaldo on-loan in January with the option to sign him permanently in June, while Stoke would be open to a similar arrangement after making Jermaine Pennant's deal permanent from Real Zaragoza.

A spokesman for Osvaldo's management company told Cadena SER: "Things are beginning to move.

"Everton and Stoke City would like to do business with Espanyol."

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